Short answer
Possibly. Alternative/B lenders may consider recent arrears when income, explanation and equity support the file. MIC and private lenders may focus more on equity and exit. The right route depends on how serious the arrears are and how the borrower returns to lower-cost lending.
The client problem
The client asks only whether someone will approve. A quick approval with no exit can lead to another renewal crisis twelve months later.
A practical Ontario example
A self-employed borrower has good business deposits but low taxable income and two late mortgage payments. A B lender may assess bank statements and business cash flow. If timing is too tight, a private term may bridge to the B application.
How the lending routes may differ
- A lender: may become available after arrears season and credit have recovered and standard income fits.
- Alternative/B: can use broader income evidence, with lender-specific ratios, fees and property requirements.
- MIC/private: can solve immediate timing against equity, ideally with an open or suitable term aligned to the verified exit.
Policy boundary: FCAC expectations discussed here apply to federally regulated financial institutions and do not require every lender to offer the same relief.
Questions to ask now
- What caused the arrears?
- Which income evidence supports B lending?
- How long until credit and payments recover?
- What is Plan B if the expected refinance fails?
Rajiv’s practical view
Design the return path before accepting the temporary mortgage. Write down the target lender category, required documents and earliest realistic exit date.
Source and context
General Ontario education. Results depend on the contract, lender, administrator, property, equity, documents and legal advice. No approval or legal outcome is promised.
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Rajiv Verma, Mortgage Broker · Ontario